1/22/15

It may only be January but many people are already thinking about this year's upcoming tax season. Recently, the government rolled out some new points and H&R Block would like to tell you about them:

New tax credits for families could mean more money in your pockets

There are so many wonderful experiences that come with having children but there are also expenses. From childcare to extra-curricular activities to shoes that they quickly outgrow, the costs can quickly add up. Fortunately, our little ones also provide opportunities for many tax benefits and credits and this year, there are new tax credits that could result in greater tax savings for families.

Children’s Fitness Tax Credit Doubled: If your children are registered in activities such as swimming or martial arts, hang onto your receipts. The Children’s Fitness Tax Credithas doubled allowing you to claim up to $1,000 in expenses. You claim the receipts in the year you paid – not the year the activity takes place. The tax credit applies to children under 16 at the beginning of the year, or under 18 if they're eligible for the disability amount.

New Family Tax Cut: The Family Tax Cut is a limited form of income splitting that allows families with children under 18 to save when one spouse earns considerably more than the other. Eligible families can claim a non-refundable tax credit equal to the amount of tax savings that would be realized by transferring up to $50,000 worth of income from the higher-earning to the lower-earning spouse or common-law partner. Here’s how it would work assuming you are a double income family with two children: If you earned $60,000 per year and your spouse earned $12,000 per year, you would get a family tax cut of $1,260 based on what your taxes would have been if you each had income of $36,000. Families with only one spouse earning income will benefit the most from this credit. The maximum credit that you can claim is $2,000.

Increased Universal Child Care Benefit: There are some welcome changes to the UCCB. First, for parents with children under six, the monthly amount will increase to $160 (up from $100). Secondly, parents with children between six and 18 will now receive $60 a month – up to $720 for the year. The increase for January to June will be paid in a lump sum in July 2015 and the adjusted payments will arrive monthly after that. If you have not been applying for the CTTB, you must reapply for the UCCB using form RC66.

If you’re unsure of your eligibility for these new credits or need more information, an H&R Block tax professional can walk you through what’s new for your tax return this year.For more information please visit www.hrblock.ca.

WIN IT!

Be ready for this tax season with H&R Block! One lucky AME reader has the chance to win a tax voucher (good for use at any H&R Block location). Use the giveaway ballot below to enter for your chance to win!
Open to Canadian residents 18+ (excluding Quebec). Entrants must complete the mandatory. Winners are notified via valid email address and have 48 hours to complete a winners form + skill testing question to qualify. Prize sponsored by H&R Block.
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Good Luck!

Yes I knew about the new family tax additions but had not heard of the Child Fitness tax increase. That's great news! I always do my taxes a few weeks before the cut-off date so they are in on time. I do mine old school, by hand, but would like to use a service like H&R block instead.

I'm typically an early tax filer. We often get a small refund that I'm always eager to receive :) I didn't know about the new family tax additions until yesterday and I couldn't be more thrilled. My Husband and I welcomed our first bundle of joy in November so these new changes will defiantly help us! Thanks so much for a great giveaway!